Keeping it in the family: proposed reforms to FIRB's
treatment of family arrangements
This part of our FIRB Reforms Article Series focuses on the
Commonwealth Government's proposal to prevent the use of family
arrangements by foreign investors to circumvent the operation of
the Foreign Acquisitions and Takeovers Act
1975 (Cth) (FATA). The release of the
Commonwealth Government's discussion paper on 5 June
(Discussion Paper) proposes amendments to
Australia's foreign investment framework to address what it
sees as gaps in the integrity of the foreign investment approvals
process in respect of family arrangements and the transfer of
property by operation of a will.
In the context of family arrangements, the Discussion Paper
addresses two key areas of concern. Firstly, arrangements under
which foreign persons provide funds to their Australian resident
relatives for the purchase of land in Australia, without needing
FIRB approval. The Commonwealth Government's key
